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jack of stocks

11/04/07 11:00 PM

#6911 RE: analystslie #6910

Analystslie: Total authorized shares which is 400 million . Total outstanding shares and fully dilutive shares all should be taken into consideration. Just because a company fully discloses the fully dilutive amount of share it doesn't imply dilution is on going until the stock price reaches a certain price level.

Then again if warrants are exercised at a particular price point the company receives cash for each warrant that is exercised. It only becomes an issue if the exercised warrant which becomes common stock becomes overhang which could result in selling pressure.

At this price level all of this is immaterial as I agree the warrants won't come into play until the stock price is well above 30 cents.

The dilution concerns at this price level are immaterial unless the company did an additional round of financing below .21 a share.